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Maturo: Audit Confirms $1.16 Million Budget Surplus [DOC]

East Haven Mayor Joseph Maturo Jr also stated the town reduced its long-term debt by $3.06 million dollars and increased the fund balance to $1.6 million during the 2012-13 fiscal year.

"In the last year, we tightened our belts and found ways to provide the same levels of excellent service to our residents while, at the same time, saving significant money," Maturo stated. Credit: East Haven Mayor's Office
"In the last year, we tightened our belts and found ways to provide the same levels of excellent service to our residents while, at the same time, saving significant money," Maturo stated. Credit: East Haven Mayor's Office
The following is a press release from the East Haven Mayor's Office.

Mayor Joseph Maturo, Jr. announced today that the Town received the official audit for the 2012-2013 fiscal year, which confirms that the Town ran a surplus of $1.16 million dollars for the past fiscal year and reduced its long-term debt by $3.06 million dollars.

Maturo explained, “I am proud of our community’s financial recovery since 2011 and pleased with the rigid spending controls that I instituted and that have enabled that recovery.  In just the last two fiscal years, we’ve paid off over $6.5 million dollars in long-term debt and increased our rainy day fund by over $1.4 million dollars.”

According to the ’12-‘13 audit, the Town had total revenues of $90,443,557.00 and total expenditures of $89,279,677.00.  The Town also had a small expense adjustment of $1,273.00.  The end result was a yearly surplus of $1,162,607.00.  

As a result of the yearly surplus, the Town’s running fund balance, or rainy day fund, increased from $437,843.00 to $1,600,450.00 – an increase of 365% in one year.  Major credit rating agencies, like Moody’s and Standard and Poor’s, recommend that municipalities maintain the equivalent of 5% of their operating budgets as a fund balance.  At present, East Haven’s operating budget is $87,305,281.00.  Accordingly, the Town’s recommended fund balance is approximately $4.37 million dollars.  

Maturo explained, “When I came back into office in 2011, the Town had just $200,000.00 of the recommended $4.37 million dollars our fund balance.  In just two short years, we’ve restored this fund to $1.6 million dollars, which equals 36% of the recommended funding level.  These figures demonstrate that even while we’ve made extraordinary progress in two short years, we still have significant work to do to restore the fund to the proper level.”

Maturo continued, “The audit further confirms that, even after borrowing to finance the Town’s compliance with the Department of Justice settlement agreement, we lowered our long-term debt by an impressive 6.7%.  This is an extraordinary accomplishment, given the magnitude of the DOJ settlement.”

For the second fiscal year in a row, Maturo instituted a spending and hiring freeze, which began roughly a third of the way through the ’12-’13 fiscal year.  Maturo attributes the Town’s significant surplus to this freeze.  Maturo explained, “It is easy to spend other people’s money.  It is much harder to hold department heads accountable and produce real savings.  In the last year, we tightened our belts and found ways to provide the same levels of excellent service to our residents while, at the same time, saving significant money.”

According to the audit, the Town continues to maintain a credit rating of A3 from Moody’s, a rating which the Mayor believes should be upgraded.  Maturo explained, “Like any person, the Town has a credit rating, which had been allowed to slip to a ‘Baa1” grade, or ‘non-investment grade,’ between 2008 and 2010.  Our reduction of long-term debt, for the second year in a row, certainly lays a case for an upgrade in our credit rating, which will save our residents money if we look to borrow in the future.”

Maturo concluded, “In the last election, I campaigned on a platform of reducing debt and carefully limiting spending.  This audit confirms that we accomplished both of these goals in this past fiscal year.  As we look ahead to the challenges of the upcoming budget season, our focus will continue to be on curbing spending and continuing to make East Haven an affordable community to live and raise a family.”

Mike Liso January 16, 2014 at 05:43 AM
You were right, Richard, and to quote Jackie Gleason,"And away we go".
Richard Poulton January 16, 2014 at 09:02 AM
Mike, this is off subject, but did you research that statute I recommended in regards to a prior story?
Mike Liso January 16, 2014 at 12:01 PM
Yes I did and thank you. It answered a lot of questions regarding that story. Can't wait to read more of the negative comments, it amazes me how people look a gift horse in the mouth.
Richard Poulton January 16, 2014 at 12:29 PM
Good. Now go and read 53a-22, subsections (d) & (e). It will widen your eyes.
Rojo January 19, 2014 at 08:01 AM
@Wendy: I don't know the reason why they pulled funding for the Sound School, but if I were you, I would bring that up to the BOE. It's a great school, I know children who have gone there. I remember Tom Hennessy wanting to put a similar school in EH at one time. @Dan, LMAO, our taxes are so high, we might as well be living in New Haven. Who conducted this audit? An outside auditor or was it an inside job? The fail to mention the credit cards Maturo uses to pay the bills, so it appears they are paid off, all smoke and mirrors. There are times when money needs to be spent, proper equipment, road repair, etc., the town looks like crap, but we saved a lot of money. Someday, I hope a political administration will meet with some of the other shoreline towns and become educated on how to have lower taxes, better school systems and a beautified town.

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